Investing a nominal amount in strategic backup equipment that you might never need is hedging.
An event that has a low probability of occurring but that (if it occurs) will be highly catastrophic is exactly the scenario that calls for hedging. Most critical systems have already diversified by building in redundancies (generators) and an insurance check wouldn’t be very useful for keeping the rest of us alive.
> an insurance check wouldn’t be very useful for keeping the rest of us alive
True. I meant "insurance" in the general sense (clarified my post). Insurance can be any number of things, as you mention, including hedging and diversification.
An event that has a low probability of occurring but that (if it occurs) will be highly catastrophic is exactly the scenario that calls for hedging. Most critical systems have already diversified by building in redundancies (generators) and an insurance check wouldn’t be very useful for keeping the rest of us alive.